Goods & Services Tax (GST) has now become a hot topic in the Indian economy, and with the approach of GST implementation date, the corporate community has started showing their anxiety. The businessmen are now thinking that it would be tough for them to meet all the compliances and retain a record of regular business activities.
However, though there are lots of concerns among these small entrepreneurs, everything may become simpler with the use of technology. The technological framework will lead to a smooth application of GST. All the corporations and businesses have to conduct the process rightly by applying technology.
Technology is at the core of GST implementation, it will not only reduce tax evasion but will will be administered through a common platform – GSTN server. GSTN will be the first such supersystem of third-party portals and applications for government-to-business service. When established fully, in mid-2018, it will mark the second such ‘platform’ for applications in India’s history after Aadhaar.
Until now, there is the only minimum use of technology, though it plays important function to ensure streamlined tax rules. However, after implementing GST, you can see the higher value of technology. From the uploading of the invoice to the tax filing process- all may be conducted through the online world. Thus, it’s much essential for any business to make use of the safe, efficient and robust application.
Small businesses that create the invoice for the consumers, should know about the value. While the value of invoice is 50,000 or less than it, there is a need for only a single consolidated item. When it goes beyond this limit but remains within the range of Rs. 2, 50000, the purchasers’ tax information is essential.
Lots of queries, however, have arisen in the mind of many people:
We may get all the solution of the above questions after deploying the technology. In fact, technology will play a valuable role to make sure that all the systems are compliant with tax. The best way to ensure the great transformation is by implementing the suitable infrastructure and technology that considers all the GST-related requirements.
All companies have to launch such system that allows accurate GST calculation and includes every rule, determined by the Indian government. At this point, you can realize the blend of technology and tax-related content. The overall system may comprise rules, logic and also content. The important fact is that automatic update is also possible.
It is the second most important step after considering the right amount of tax. It indicates the preparation of tax returns in an accurate way. With the rules of GST, all companies need to ensure that they update their sales information regularly to reconcile credits and tax payouts. The innovative technology will allow the corporations to handle the rules.
To audit transactions also, technology may reveal its importance. The reports, generated by the usage of technology, will help to do all the internal assessments. Thus, our country needs technological arrangement if the government wants to apply Goods & Services Tax (GST) effectively in every state. These technologies will enable corporations to stay compliant with tax regulations all the time. Moreover, modern technologies will also assist the corporations to operate in every sector by carrying out various processes.
Goods & Services Tax (GST) migration is also giving the migraine to small business owners, even some are not ready for GST and even some experts recommend to put off implementation of GST until September. Indeed this new tax insight reform is such a hugely complex system that tax-related smallest modification may lead to the domino effect, affecting the entire structure of a business from top to bottom.
Traders association Confederation of All India Traders (CAIT) in March 2017 made a case for delaying the rollout of Goods and Services Tax (GST), however govt. has already refused to compromise further as they claim that there is already enough flexibility in the system. The whole system is online, and sixty days would be given to adopting this technology-based system. Now, if you want to make your business compliant with GST tax rules, you need some simple infrastructure.
You have to buy one computer system and use internet network. You need little knowledge for recording invoice in the spreadsheet and for uploading it to the right online portal. These are the few requirements for staying conformed to the new GST system.